This Stock-Market Rally Looks Different

The U.S. equity market posted one of its best performances in recent memory last week. True, we have seen many bear-market rallies before, but this one was different.

Without getting into too much inside baseball, the market internals may very well be indicating that the worm has turned. As evidenced by General Electric's ( GE) performance after S&P downgraded its credit rating, bad news may have finally been priced into stocks.

Now, either the good news or the bad news is that I'm not alone in this assessment. TheStreet.com contributor Doug Kass started calling for a market bottom a week or so ago. CNBC contributor Dennis Gartman has also gone from negative to positive in his views of the equity market. And last weekend, Barron's ran an article written by Kopin Tan titled "Maybe the Fifth Time's a Charm."

I'm usually not fond of having the same view as everyone else, but this time I'm in pretty good company.

As we have stressed repeatedly, in terms of trading, it's all about discipline. I will remain bullish as long as the S&P 500 continues to close above the 741 level that we have written about many times.

A while back, I wrote that we could see 900 in the S&P 500 by St. Patrick's Day. Well, with the S&P 500 closing at 757 on Friday and St. Patrick's Day being tomorrow, that prediction may be a tad optimistic.

Still, don't get caught off guard by this market that has lulled everyone to sleep. We may be setting up for a run not unlike the Villanova Men's Basketball team in 1985.